Deeds and Private Financing

Deeds and Private Financing | Boulder Real Estate Lawyer

As a Boulder real estate lawyer James Newell routinely drafts deeds and private financing documents such as deeds of trust, and promissory notes. James drafts all manner of deeds, including, conservator deed, personal representative deeds, and beneficiary deeds.

Nearly every time a parcel of real estate changes hands in Colorado, the execution and delivery of a deed is an essential component of the transfer. Similarly, nearly every time a loan is involved in the sale of real estate, a promissory note and deed of trust are also necessary to ensure repayment and attach a security interest to the property.

A deed is a written legal instrument through which a seller or owner of land (whether improved or unimproved), conveys to someone else some title, right, or interest in the real estate. Sometimes deeds are used not to convey an interest in real estate, but simply to confirm that title has changed hands as a matter of law. The seller of real estate is typically designated on a deed as the grantor and the buyer is called the grantee.

In real estate sales, promissory notes are negotiable instruments by which one party (the Maker or Debtor) promises to pay a specified sum of money to another party (the Payee). Promissory notes are ubiquitous in real estate transactions in Colorado and throughout the United States.

Along with promissory notes, deeds of trust are also ubiquitous in Colorado. Deeds of trust are legal instruments used in real estate sales through which a debtor entrusts real estate owned by the debtor to the public trustee for the county in which the real estate is situated (e.g., the Public Trustee of Boulder County if the real estate is located in Nederland). The purpose of this arrangement is so that in the event of a default by the debtor, the lender may bypass the courts (for the most part) if the debtor defaults on the loan. Instead of foreclosing a mortgage through the courts, the lender petitions the public trustee to foreclose the loan, sell the real estate through public auction, and (usually) use the proceeds of the sale to pay off any amount owing on the underlying loan.

The ostensible simplicity of deeds, which are often just one or two pages, can be a dangerous trap for the unwary. There are websites that advertise widely for do-it-yourself legal documents. The important legal instruments I just mentioned can be casually picked up at office supply stores, filled in, and filed with the county recorder. It’s as simple as that. Isn’t it?

Unfortunately for far too many people in the internet age, the easy, low cost, fast-paced approach of do-it-yourself often turns out to be an unmitigated disaster when the do-it-yourselfer finally consults a lawyer. He or she may decide to sell the property and come to find out that there is no way (or no inexpensive way) to remedy the harm that has already been done.

These documents have many second and third order legal consequences that are by no means simply academic or theoretical in nature. James Newell sometimes has the unenviable obligation of advising individuals who have used seemingly simple quitclaim deeds to transfer real estate to relatives, spouses, or friends with the mistaken belief that the effects of executing and recording a deed could be easily reversed. It is vital to have the advice and experience of a real estate attorney who understands the state and federal legal and tax consequences of conveyancing before doing anything on your own involving real estate sales or transfers.

If you believe a deed (e.g., warranty deed, quitclaim deed, beneficiary deed), deed of trust (similar to a mortgage), or promissory note may be necessary to effectuate a real estate deal, and are looking for a Boulder Real Estate Lawyer with a results-oriented approach tailored to your matter’s specific needs, contact Newell Law. We have the expertise and knowledge to ensure your deeds and private financing documents are drafted properly.

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Law Office of James Newell
948 North Street, Suite 101
Boulder, CO 80304-3385